The Tennessee Valley Authority is abandoning plans to lay off dozens of U.S. technology workers after President Trump, in a broadside against the power company earlier this week, fired two of its board members.
“We were wrong in not fully understanding the impact on our employees, especially during the pandemic,” said Jeff Lyash, TVA’s CEO, in a statement Thursday. Lyash and interim board Chairman John Ryder met with Mark Meadows, White House chief of staff, and Pat Cipollone, White House counsel, according to a news release.
“TVA fully understands and supports the Administration’s commitment to preserving and growing American jobs,” Lyash added.
Trump cracked down on the TVA on Monday, removing the company’s board Chairman James Thomspon and board member Richard Howarth. He announced that decision during a meeting in which he signed a new executive order requiring federal agencies to prioritize U.S. workers in federal contracts.
That executive order specifically criticized TVA for saying it would outsource 20% of its technology jobs, which the order said could cause more than 200 U.S. workers to lose their jobs.
Ryder, in a statement, said he and Lyash told the White House that the company’s restructuring process was “faulty.” TVA, the country’s largest public power company, serving seven states, is also reviewing its contract work to ensure that it tracks with Trump’s executive order.
Trump’s issues with TVA don’t stop at its outsourcing of jobs, however. The president has also repeatedly criticized Lyash as “ridiculously overpaid” with a salary of $8 million per year.
Any new CEO of the power company should be paid no more than $500,000 a year, “which is still a significant amount more than the president of the United States,” Trump said Monday.
Lyash didn’t address these criticisms in his statement.
“Our mission is clear — delivering low-cost reliable power, economic development, and environmental stewardship,” Lyash said. “We are addressing this disappointing misstep and refocusing our commitment on serving our customers and this nation.”
